Foreclosure Funds Being Diverted to General Budget Use

As part of the $25 billion settlement negotiated between states and five major banks over abuses in their mortgage and foreclosure processes, the states received $2.5 billion to help homeowners and mitigate the effects of the foreclosure surge. A new report from a housing group, however, found that only 27 states have devoted all their funds to housing programs, while 15 states say they will use all or most of the money for other purposes. Read more in The New York Times